A ‘no deal Brexit’ will not deter investors in UK student property

A ‘no deal Brexit’ will not deter investors in UK student property

With the prospect of the UK leaving Europe without a deal being forged becoming an increasingly possible scenario, the future for student property in the UK still remains strong, according to the leading real estate investment trust GCP Student Living (DIGS).

With a total increase in net asset value of 7.2% for the year to 30th June, DIGS, which owns ten halls od residence in London, has singled out buoyant student numbers and the high price of recent student property transactions, for its ‘post-Brexit no deal’ confidence.

International students make up approximately 75% of DIGS’ tenants and with the growth of non-EU applicants rising by 6% and even a 2% increase in students from the EU, it would appear that most students are still attracted by the high standard of UK universities and are not deterred by Brexit.

The aforementioned recent student property transactions that DIGS has made include the £2.4 billion disposals of the Pure Student Living and Chapter portfolio in London, underlining the resilience of the student property market in the face of Brexit.

Commenting on this, DIGs said: “This is driven by large investors willing to pay premiums for student property portfolios. The money attracted to student accommodation is not being put off by Brexit. These investors think like students – they are not making short-term decisions, they are making them for the long-term.”